Atlas took over Worcester Warriors after it went delisted last year and the new owners confirmed they have backed out of their bid to play in the RFU Championship for the 2023/23 season.
By PA Media
Last Update: 02/15/23 6:24 pm
The Wasps will play in the Championship next season, but Worcester will not.
Wasps have been given the go-ahead to enter the Championship next season, but Worcester won’t be getting a late breather following their proposed name change as ‘Sixways Rugby’.
Although Wasps met the conditions required to participate in the second tier of English rugby, talks on Monday between Worcester’s new owners Atlas, the Rugby Football Union and the Department for Digital, Culture, Media and Sport failed to break the deadlock.
Atlas announced last Thursday that the RFU’s demands for inclusion in the Championship were too onerous, forcing them to seek a merger with semi-professional Stourbridge in hopes of competing at the fourth tier.
Wasps and Worcester were put into administration early in the season after they were pursued by HM Revenue and Customs for unpaid tax, resulting in their removal from Gallagher’s Premiership.
Tuesday was the deadline for applications from clubs to join the Championship, but while Wasps produced a signed solvency agreement and proof of funds, the RFU said Worcester’s course of action meant creditors would not receive payment. .
The governing body also has concerns about Atlas’ “transparency over ownership and financing structures.”
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The company that held the contracts for the Worcester Warriors Rugby Club players has been wound up, meaning there is likely to be an exodus of players, as James Cole reports.
“Our aim has always been to see Wasps and Worcester in the Championship and to preserve the clubs for their fans and the wider communities they serve,” said RFU chief executive Bill Sweeney.
“While we had hoped to see both clubs in the Championship next season, we are pleased that after months of work by all parties involved, Wasps has a place. We know this will be very welcome news for all those associated with the club.
“We would like to thank everyone involved with Wasps for the open and collaborative dialogue over the past few months.
“We remain in positive dialogue with the RFU and thank them for their continued support as we work to secure our future.
“Recent events have highlighted, more than ever, the importance of long-term sustainable investing.
“Our focus remains on financially stabilizing the club and for Wasps to play in the Championship next season.”
“We appreciate that the disappointment felt by the Worcester Warriors staff, players and fans following the Atlas decision will be very significant.
“For a club to continue after insolvency, it is imperative that it have a sustainable and financed business plan, that there is transparency about ownership and financing structures, and that rugby creditors are paid.
“The payment of rugby creditors is an integral part of our insolvency rules and we cannot approve the takeover of a club without an agreement that payments from rugby creditors will be made.
“Given Atlas’s withdrawal from the proceedings, we are concerned that there are insufficient funds to pay off rugby’s creditors.
“We will continue to work with Atlas over the coming weeks to understand his vision for rugby at Sixways.
“While the RFU is the regulator of rugby union, we have worked tirelessly to ensure we are making the best decisions for the sport.”